Intel has negotiated a deal with the Israeli government under which the company will spend $6 billion on upgrades to its chip fabrication plant in Kirya Gat, the country's finance and economy ministries announced Monday.

In turn, Israel will grant Intel a total of $300 million over five years. In addition, Intel's corporate tax rate will be set at a lower-than-normal 5 percent for 10 years.

The plant, which produces a wide range of processors, currently has 2,500 employees. Intel anticipates creating 1,000 more jobs over the next decade.

Israel Finance Minister Yair Lapid described Intel's funding plan as the "biggest investment by a foreign company ever in Israel," Reuters reported.

Intel is still the undisputed king in computing processors, but has fallen by the wayside in mobile, where companies like Qualcomm and Samsung have picked up the slack. Intel has reassured investors that it will make a concerted effort to establish itself as a leading brand in mobile, but has so far remained on the outside looking in.

It's not clear yet what the upgrades will mean for Intel in Israel, but it's believed that the investment will ultimately boost production. Intel hasn't said whether the investment will also be used to boost its mobile efforts.

CNET has contacted Intel for comment. We will update this story when we have more information.